Stakeholder Identification and Communication Channels

Communication and interaction with stakeholders is an important part of a company’s operations; a company is able to understand the needs of stakeholders through diverse and smooth communication channels and to respect them, thereby protecting their legitimate rights and interests. Through diverse channels of communication, FocalTech gets an in-depth understanding of the issues stakeholders are
concerned about. Based on the importance and priority of each issue of concern to stakeholders, FocalTech incorporates the communication situation with each stakeholder into management meetings on a regular basis, and regards stakeholder feedback as a major reference for future CSR policies. In this regard, FocalTech attaches great importance to maintaining a good and smooth communication channel with
stakeholders. By understanding the actual needs and expectations of stakeholders, FocalTech will be able to identify the potential risks and management opportunities it faces, and prioritize the maximization of rights and interests of stakeholders. Having earned the trust of all stakeholders, FocalTech will make continuous improvements so as to conform to the corporate philosophy of sustainable management.

 

FocalTech’s Sustainability Development Team evaluated the five major factors including responsibility, influence, concern, multiple perspectives, and dependability in accordance with the five principles of the AA1000 Stakeholder Engagement Standards. After a discussion based on the feedback and analysis of the information, the Sustainability Development Team identified the key stakeholders for the 2021 ESG Report. The key stakeholders of the Report include (1) employees, (2) customers, (3) shareholders and investors, (4) suppliers, (5) competent authorities, and (6) academic research institution.

 

The Company submits the sustainable development work report to the Board of Directors every year, and has reported the communication status of various stakeholders in the most recent year to the Audit Committee and the Board of Directors on February 21, 2025.

The communication status and report content of each category of stakeholders are as follows:

 

The Sustainability Development Group regularly discusses economic, governance, social and environmental issues and major topics, the achievement of each unit's goals and the formulation of future directions every year, and compiles relevant results data, consultation results with stakeholders and sustainable discussion recommendations to the Audit Committee and the Board of Directors for review, reporting and confirmation.

 

Through different communication channels, FocalTech listens to and understands the needs and expectations of its stakeholders, and responds to them in a timely and appropriate manner. Good two-way communication not only drives the development of FocalTech’s sustainability policy, but also makes the best effort in leading FocalTech to move forward towards a better living environment.

 

  • Employees

    Issues of concern

    • Labor-management issues
    • Protection of human rights
    • Employee appointment and compensation management
    • Education & Training and career development
    • Diversity, Equality and Inclusion(DEI)

     

    Communication channel / Communication frequency

    • Hold various activities occasionally
    • Submit the proposal for employee promotion on a regular or occasional basis every year
    • Organize internal and external education & training programs occasionally
    • Hold a birthday celebration event every two months
    • Employee Performance Appraisal (semi-annually)
    • New Employee Discussion Forum (New employee orientation)
    • Employee Welfare Committee Meeting (monthly on average)
    • Internal information announcement (real-time)
    • Employee feedback channel (real-time)
    • Labor-management meeting (quarterly)

     

     

  • Customers

    Issues of concern

    • Customer’s product
    • Customer’s technology

      

    Communication channel / Communication frequency

      • Feedback to the responsible unit based on issues raised by new and old customers (irregularly)
      • Depending on the needs of potential customers, a dedicated unit will assist (irregularly)

      


     

    Issues of concern

    • Product and Service Quality
    • Prohibited and restricted substances management
    • Conflict minerals management

     

    Communication channel / Communication frequency

     

    • Customer Satisfaction Survey (annually)
    • Customer meeting (occasionally)
    • Customer audit (occasionally)

     

     

  • Shareholders / Investors

    Issues of concern

    • Operational performance
    • Any behavior that may violate the rights and interests of shareholders

     

    Communication channel / Communication frequency

    • Shareholders’ Meeting (annually)
    • Conference Call (quarterly)
    • Annual Report (annually)
    • Investor mailbox (occasionally)

     

     

  • Suppliers

    Issues of concern

    • Supplier management
    • Green procurement
    • Raw materials management
    • Quality management

     

    Communication channel / Communication frequency

    • Supplier assessment meeting (annually)
    • Procurement negotiation (occasionally)
    • Supplier audit (occasionally)

     

     

  • Competent authorities

    Issues of concern

     

    • Regulatory compliance
    • Implementing tax compliance policies

     

    Communication channel / Communication frequency

    • Forums and seminars (occasionally)
    • Fire safety and environmental permit status check (on a regular or occasional basis)

      


      

    Issues of concern

    • Occupational safety and health promotion
    • Waste management
    • Energy and Greenhouse Gas Management
    • Climate Change Risk Management and Response
    • Occupational safety and health promotion

     

    Communication channel / Communication frequency

    • Fire safety and environmental permit status check (on a regular or occasional basis)
    • Occupational Safety and Health Committee (quarterly)

     


      

    Issues of concern

    • Board of Directors and Functional Committees
    • Corporate governance and risk management
    • Sustainable promotion and development of enterprises
    • Professional ethics and Regulatory compliance

     

     

  • Academic research institution

    Issues of concern

    • Career development and education and training
    • Talent cultivation

     

    Communication channel / Communication frequency

    • Campus scholarship (irregular according to the plan)
    • Industry-university cooperation plan and meetings at each stage (irregular)
    • Internship program (irregular)
    • In-depth lectures (irregular)
    • Professional teaching (according to the plan)

     

     

Major Issue Identification and Boundaries of Impact

In order to meet stakeholders’ expectations for sustainable development, FocalTech conducts materiality analysis based on the steps of identification, collection, analysis, and confirmation in accordance with the GRI Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI). Additionally, it is also to ensure that the major issues meet the needs and expectations of each stakeholder.


The materiality analysis is based on two components: the intensity of stakeholders’ concerns and the evaluation of operational impact of the issue. In order to understand the intensity of stakeholders’ concern on the Company’s sustainability issues, the Company, based on the results of the analysis adopting the GRI Sustainability Reporting Standards, takes into account its current sustainability management goals to define the boundaries of impact and the degree of involvement. From which, the Company has selected a total of 10 major issues to respond to, namely, Corporate Governance, Operational Performance, Product Quality, Sustainable Supply Chain,  Greenhouse Gas Emissions and Energy Management, Talent Cultivation and Training, Employee Compensation and Benefits, Occupational Safety and Health, Climate Change, and Risk Control.